BHP’s copper earnings hit $18.2 billion and overtake iron ore as Zambia returns to mining giant’s radar

Wheaton Precious Metals (WPM) and BHP Group (BHP) are involved in a $4.3B silver stream deal for BHP's Antamina mine. WPM CEO Haytham Hodaly expects similar large deals annually, driven by $2.7B annual free cash flow. Veteran investor Rick Rule highlights a $250B financing gap in mining, favoring streaming companies. McEwen Inc. (MUX) founder Rob McEwen criticizes the model for reducing operator resilience.

Australia's ASX200 rose 0.13% to 9,065.5 as US bond intervention boosted precious metals. Gold surged, lifting miners like Evolution and Newmont. BHP gained 2.2%, while Fortescue fell 0.6% after reporting a profit drop. Financials declined, with CommBank down 2.1%. Super Retail soared 16% on sales growth. The AUD strengthened slightly to 71.15 US cents.

BHP Group (BHP) reported that copper overtook iron ore as its largest earnings contributor, with copper generating $18.19B EBITDA vs. iron ore's $14.53B. Profit rose 30% to $13.2B, beating estimates. BHP plans to allocate over half of its $11B annual capital spending to copper growth, aiming for 40% production increase by 2035. Copper prices and byproducts drove the profit increase, but iron ore remains a key cash flow source.

BHP is reviewing the future of its Kalgoorlie Nickel Smelter, which was mothballed in 2024. A WA MP seeks government bailout support, citing nickel's critical mineral status. BHP may divest or restart the asset by February 2027, with a decision pending. The company reported a $9.8 billion profit for 2025-26.

BHP Group reported its highest full-year dividend in four years at $8.7 billion. Copper became the largest earnings contributor, generating $18 billion in EBITDA (54% of group EBITDA). The company expects 3-4% annual growth through 2035, with copper growing at 5% annually. BHP also announced operational improvements and investments in copper projects, including a new concentrator at Escondida. According to BHP, copper prices rose 35% and iron ore prices increased 3% during the year.

The S&P/ASX 200 fell 0.27% on Wednesday as gold prices dropped and bond yields surged. CSL rose 17.25% after strong earnings, with Bell Potter raising its price target to $150. BHP gained 2.65% on a 30% profit increase. Gold miners faced pressure, and banks declined amid interest rate concerns. Australia's Wage Price Index release is awaited.